Coty completes purchase of 20% stake in Kim Kardashian West business
Coty has completed its acquisition of a 20% ownership interest in Kim Kardashian West's KKW beauty business, as both parties set their sights on developing a high growth, direct-to-consumer beauty brand across a range of key categories.
The $200m strategic transaction was announced in June 2020 and successfully completed on schedule in Q3 fiscal year 2021.
It will see Coty and Kardashian West focus on global growth and expansion into haircare, personal care and nail products as well as the development of Kardashian West’s new skincare line which is on track to launch in fiscal year 2022.
Coty chief executive Sue Y Nabi said: “Kim shares our true passion for beauty products, and this acquisition allows us to leverage our respective strengths for mutual benefit and value creation.
“Coty brings unique IP in skincare, the scientific knowledge of the skin as reflected in our formulation know-how, while Kim brings a huge global following and unparalleled influence over consumer choice.
“She has a unique ability to read the latest beauty and wellness trends, while we have the expertise on global product positioning, access to a vast global distribution network, and the resources to enter new beauty categories.
“I look forward to working closely with Kim and her team and I’m excited by everything we will achieve together."
Kardashian West and her team will lead on product and communications initiatives, building on her “global reach capabilities through social media,” while Coty will have overall responsibility for the portfolio’s development (skincare, haircare, personal care and nail products), leveraging its understanding of the industry and its commercial expertise.
Products will be sold through leading luxury beauty retailers, as well as owned digital channels.
Kardashian West said: “I’m so proud of how the KKW brand has grown over the past four years, and I look forward to working with Coty for the next phase of innovation, advancement, and the ability to bring new launches to customers all around the world.
“This relationship will allow me to lead the development of the creative elements that I specialise in, while benefiting from the incredible resources of an established company like Coty.”